Annual Report Nazareth Care Charitable Trust

Transcription

Nazareth Care
Contents
Reference and Administrative Details of the Charity, its Trustees and Advisers ................................................... 3
Introduction ............................................................................................................................................................ 4
Core Values ............................................................................................................................................................. 5
Message from Chair of the Board of Trustees and Chief Executive Officer ........................................................... 6
Trustees’ Report (incorporating a Strategic Report) .............................................................................................. 7
Independent Auditor’s Report to the Trustees and Members of Nazareth Care Charitable Trust ...................... 28
Group and Charity Statement of Financial Activities ............................................................................................ 30
Group and Charity Balance Sheet ......................................................................................................................... 31
Group Cash Flow Statement ................................................................................................................................. 32
Principal Accounting Policies ................................................................................................................................ 34
Notes to the Financial Statements ....................................................................................................................... 37
Nazareth Care Charitable Trust
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Reference and Administrative Details of the Charity, its Trustees and Advisers
Trustees
Sister Anna Maria Doolan
Sister Madeline Merriman
Sister Teresa Bernadette Fallon
Sister Sheila Collingborn
Sister Rose Ita Doody
Sister Brenda McCall
Father John Martin
Mrs Margaret Hysel
Mr Paul Williams
Mr Dominic Peter Freely
Appointed 1 April 2012, Chair
Appointed 7 February 2014
Appointed 30 November 2012
Appointed 1 April 2012
Appointed 1 April 2012
Resigned 1 April 2012
Appointed 28 May 2013
Resigned 12 March 2014
Officers
Regional Superior – UK Region
Chief Executive Officer – UK Region &
Company Secretary
Finance Director – UK Region
Property Director – UK Region
Care Quality and Compliance Director
Sister Anna Maria Doolan
Mr Robert York
Mr Christopher Stringer
Mr Stephen Smith
Mrs Philomena Moon
Administrative Details
Registered Office
Larmenier Centre
162 East End Road
London N2 0RU
Telephone
020 8444 4427
Email
[email protected]
Website
Company Registration Number
Charity Registration Numbers
www.sistersofnazareth.com
05518564 (England & Wales)
1113666 (England & Wales)
SCO42374 (Scotland)
Auditor
Buzzacott LLP
130 Wood Street
London EC2V 6DL
Bankers
Barclays Bank plc
Acorn House
36-38 Park Royal Road
London NW10 7JA
Principal Solicitors
Stone King LLP
13 Queen Square
Bath BA1 2HJ
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Introduction
Nazareth Care Charitable Trust is a company limited
by guarantee and was registered under the name of
Victoire Larmenier Foundation with Companies House
on 26 July 2005 with the Company Registration
Number 05518564 (England and Wales). It is a
registered charity and was registered with the Charity
Commission on 6 April 2006, Charity Registration
Number 1113666 (England and Wales). The charity is
registered also with the Office of the Scottish
Charity’s Regulator (OSCR) - Charity Registration
Number SC042374 (Scotland).
The charity commenced activities in April 2007. It
changed its name to Nazareth Care Charitable Trust in
September 2010 as part of a restructure within the
Congregation of the Sisters of Nazareth in the UK.
The charity provides care for the elderly, disabled,
and terminally ill in 13 care homes throughout
England, Scotland and Wales. It also provides nursery school education on two sites and a
retirement village situated in Blackburn, with a second village well underway at Plymouth
Nazareth Care Charitable Trust is all about people, not only the people we care for but our staff.
With this in mind, Nazareth Care Charitable Trust has adopted the core values of The Congregation
of the Sisters of Nazareth as its key principles and in November 2013 commenced a journey to
become recognised as a Servant Leadership organisation.
Nazareth Care Charitable Trust working in partnership with The Congregation of the Sisters of
Nazareth Charitable Trust has brought together a true Nazareth family. This family strives hard to
continue the work of the foundress, Victoire Larmenier, who founded The Congregation of the
Sisters of Nazareth in 1851.
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Core Values
Love
Compassion
Love motivated the care
provided to the old and the
young by Victorie Larmenier.
Unselfish concern for the good
of others is shown through
patience, kindness, trust, hope,
endurance, truth and a strong
affection.
Victoire
Larmenier
showed
compassion by seeking to relieve
the existing suffering of those
with whom she came in contact.
Being open and attentive to the
whole
person,
spiritually,
physically and emotionally, we
show empathy for the suffering
of others and try to relieve that
suffering.
Justice
Patience
Victoire Larmenier was an
example of patience to all who
knew her. She encountered and
overcame amazing difficulties.
In
all
circumstances
we
persevere calmly and with
understanding and endurance.
Victoire Larmenier was fair and
impartial with everyone even
when people or issues were
difficult or challenging. We
uphold what is fair, decent and
right. We appreciate each
person, respecting his/her rights
in a balanced and fair manner.
Hospitality
Victoire Larmenier welcomed
everyone in a spirit of friendship
and acceptance. We welcome
and receive all into a warm,
friendly and open atmosphere.
Respect
Victoire
Larmenier
showed
consideration and appreciation
and regard for the rights, values
and beliefs of all. The unique
dignity of each person is held in
high esteem and with special
consideration. Without exception
we show thoughtfulness courtesy
and care.
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Message from Chair of the Board of Trustees and Chief Executive Officer
“It has been a very exciting year for Nazareth Care Charitable Trust. Given it is the second year we
have operated care homes, retirement villages and nurseries formally managed by The
Congregation of the Sisters of Nazareth, it has been a time to review processes and procedures and
consolidate what we have learnt.
Nazareth Care Charitable Trust is all about people and with this in mind we have embarked on a
program to implement servant leadership throughout our organisation. The principles of Servant
Leadership fit well with our core values. We take pride in ensuring that every member of staff
understands and works within the core values we have adopted from The Congregation of the
Sisters of Nazareth these are: love, justice, hospitality, compassion, patience and respect.
As we embarked on our journey of servant leadership, we travelled to every house in the region and
met with residents and their families, staff, management and Sisters. This experience was
extremely beneficial to both of us as it gave us a real opportunity to hear what people thought of
the service. The information we have gathered has been useful in influencing our next five-year
plan, but it was also a very uplifting experience listening to stories from both residents and families
about how our services have touched their lives. Our tour of the region has been so beneficial to
both of us that it is going to become an annual event which we hope will prove to be as useful to
everyone who attends as we find it to be.
This report is centered around our people, and demonstrates the true benefits of the family
business approach which we hope is evident in everything we do. Historically the annual report has
given considerable information about the structure of the organisation and its building upgrade
projects. Whilst there is a brief outline of these projects within this report, the main focus is on our
service.
As we embark on our next five-year plan we can certainly say it is a future full of hope. There are
many opportunities within the care sector that we are keen to explore to ensure we provide our
residents and their families, along with our staff, exactly what they need to flourish in what can
often be difficult circumstances.
Nazareth Care Charitable Trust is a very transparent organisation and if you would like to know
more about any aspect of our work or how to make a donation or leave a legacy we will happily
provide you with additional information.”
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Trustees’ Report (incorporating a Strategic Report)
31 March 2014
The Trustees, who are the trustees of the charitable company for the purpose of charity law and
directors for the purpose of company law, present their statutory report together with the financial
statements of Nazareth Care Charitable Trust (‘the Charity’) for the year ended 31 March 2014.
This report has been prepared in accordance with Part VIII of the Charities Act 2011 and constitutes
a directors’ report for the purposes of company law.
The financial statements have been prepared in accordance with the principal accounting policies
set out on pages 34 to 36 and comply with the Charity’s Memorandum and Articles of Association,
applicable laws and the requirements of Statement of Recommended Practice ”Accounting and
Reporting by Charities” (SORP 2005).
Strategic Report
Objectives and Activities
The Charity was established by the Congregation of The Sisters of Nazareth to assist them to
maintain their mission which principally today sits with the care of older people, through the
provision of care homes and retirement villages in the United Kingdom. The Charity also manages
the two day nurseries - one in Lancaster and one in Cardiff. The trustees intend that the work of the
Charity will enhance the quality of life of those who live in its homes whilst enabling them to retain
to the maximum their dignity and independence.
The partnership between the Congregation of The Sisters of Nazareth Charitable Trust and Nazareth
Care Charitable Trust is all about people. The sisters, the residents and their families and staff
together make a true Nazareth family. The Congregation of the Sisters of Nazareth Charitable Trust
owns the estate and provides spiritual and pastoral support whilst Nazareth Care Charitable Trust
operates the care homes and day nurseries.
Care homes
There are 13 care homes operated by Nazareth Care Charitable Trust within England, Scotland and
Wales, some providing nursing care for clients with complex needs, whilst all provide support to
those people requiring social care. We provide accommodation for 770 residents, mainly in single
room accommodation. We provide financial support to those residents who are not able to meet the
fees. The number of residents receiving some form of financial support equates to 54% of all
residents in our care. This trend is consistent with previous years and is demonstrated in the chart
below.
Funding Split
60%
40%
20%
0%
2013/14
2012/13
2011/12
Private Clients
2010/11
2009/10
2008/09
Public funding without top-up
Public funding with top-up
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During the year to 31 March 2014, the Charity operated care homes in the following locations:
Table 1
Location
England and Wales
Principal activities
Category
Number of bed-spaces
Birkenhead
Care home with nursing facilities
Cardiff
Cheltenham
Care home
Residential
Nursing
Residential
Nursing
Residential
25
25
28
27
63
Crosby, Liverpool
Care home
Residential
64
Finchley, London
Care home
Residential
84
Hammersmith, London
Lancaster
Manchester
Northampton
Care home
Residential
Nursing
Residential
Nursing
Residential
Nursing
Residential
21
74
26
15
22
39
50
Plymouth
Southend on Sea
Residential
Nursing
Residential
Nursing
25
17
32
32
Scotland
Edinburgh, Bonnyrigg
Care home
Residential
37
Glasgow
Care home
Retirement house for priests
Residential
Residential
55
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The care homes largely provide excellent standards of care, and this is evident when looking at the
relationships that staff, residents and families have built.
“It is not the Curtains or the Environment that makes this Care
Home, it is the Sisters, the Staff, the Care and extras provided at
Nazareth House”
A Relative at Nazareth House Plymouth
Our Staff
Our residents are at the forefront of everything that we do, and to ensure that they get the right
care, it is vital that we ensure our staff have the skills as well as the love and commitment needed to
provide an excellent standard of care. Aside from NVQ/SVQ qualifications, which we require all our
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staff to work towards to meet national standards, we continue to provide training for everyone
throughout their employment with us.
With our commitment to staff training in mind, we have trained 42 members of staff as trainers
enabling them to train a wide spectrum of courses; not only mandatory training required by
regulators, but also other aspects of care which enhances the lives of our residents. In addition to
these trainers, we have trained a further 15 members of staff to become manual handling trainers.
Our training programs not only enhance the care our staff are able
to provide a resident but they also give staff an opportunity to
develop and further their careers in care.
The care of the terminally ill is very
specialised and often very demanding
of the staff both physically and
emotionally especially when a
resident has been in their care for a
considerable length of time. At
Nazareth House Manchester and
Nazareth House Plymouth, there are
a considerable number of residents
who choose their nursing units for
Barbara Lupton – General Manager,
Manchester
palliative care. Both these homes
have risen to the challenge of meeting
these residents’ needs by putting all their staff through a course known
as The Six Steps. Plymouth House was the second house to receive the
Six Steps award.
This course is designed not only for nursing and care staff but all staff
Fiona Cartlidge – General
working in the home to ensure that they have the relevant skills in their
Manager, Plymouth
departments to rise to the challenge of palliative care. The general
manager at Nazareth House Manchester, the first home in Nazareth Care Charitable Trust to achieve
the award, published the following in the local press following the celebration at the award
ceremony:
“Nazareth House Manchester is the first home in the organisation to have achieved success in
completing end-of-life specialist training in palliative care. The nursing staff at Nazareth House
recently completed the year-long intensive program which is run by Bury Hospital and the Pennine
Care Foundation Trust and received their
accreditation on 26 February 2014.
Nazareth
House
encompasses
the
philosophy of palliative care and aims to
ensure all residents at all times receive high
quality end-of-life care. This is facilitated by
the organisational change, the provision of
no less than four champions plus a lead
person to provide ongoing training and
support to empower all staff to deliver the
knowledge and skills gained, to work
collaboratively and multi professionally
across all settings to identify the needs to
Graduates of the Six Steps Program
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give high quality end-of-life care to individuals and their families.
Nazareth House nursing staff work to ensure that the care of each resident is fully coordinated in
accordance with residents’ wishes and with all relevant parties. They ensure that there is good
communication and an holistic plan of care for each resident. The last days of life identified and the
resident’s wishes of being nursed by staff they have come to know and love in their chosen care home
is adhered to, so reducing unnecessary hospital admissions. The home provides a facility of an ensuite bedroom for relatives who wish to stay overnight to be close to their loved ones during their
final hours.
The end-of-life phase may be full weeks, months or years. End-of-life is defined as care that helps
those with advanced, progressive and incurable illness to live as well as they possibly can until they
die.
End-of-life care is about the total care of a person with an advanced incurable illness and does not
just equate with dying. It includes the management of pain and other symptoms plus the provision of
psychological, social, spiritual and practical support.
End-of-life care enables the supportive and palliative care needs of both the patient and the family to
be identified and met throughout the last phases of life and into the grieving process of the family”.
“It wasn’t just the love and
care my mother received in her
time at Nazareth House, the
team were wonderful and
cared for the entire family
too.”
It is very evident that good care is provided by excellent staff
and at Nazareth Care Charitable Trust we are extremely lucky
to have an exceptionally well qualified and caring workforce.
It is not just our nursing units that provide excellent
standards of end-of-life care. Our residential units strive hard
to do the same in conjunction with local palliative care
services. The staff at Nazareth houses are passionate about
Relative at Nazareth House
ensuring a home for life and wherever possible we keep
Glasgow
residents in their own environment. Regretfully in some cases
we do need to ask some residents to move to alternative care
homes where we do not have the specialist resources to meet their needs. This is something we
monitor regularly and wherever possible change the registration of the home to ensure that we are
meeting the needs of everyone in the local community that wants to use a Nazareth house. This has
included changing the registration at Nazareth House Lancaster to include a category of nursing care
not previously provided for.
We are extremely proud of our home in Northampton which now provides services for clients with
low-grade dementia care needs. This unit has been a great asset to the region and is usually
oversubscribed. We are also extremely pleased that this unit was opened in time to enable us to
care for a Sister of Nazareth who, without this service, would have had to have been cared for
outside of her community.
Following the graduation of 20 Sisters of Nazareth, general managers and regional staff from
Loughborough University with a postgraduate diploma in management and leadership sponsored by
The Congregation of the Sisters of Nazareth Charitable Trust in 2012, it is very evident that we have
a management team with excellent skills and capacity to embrace the needs of the service. They are
truly proud to work for the organisation.
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“This was an experience I never
thought I would get and it was
the single best benefit I had ever
had from an employer.”
Peter Donnelly – General Manager
Nazareth House Birkenhead
The retention of staff who attended the course has been extremely high, which again demonstrates
the strong commitment our staff have to the Nazareth family. Many of our managers are Registered
Nurses that trained within the hospitals of the NHS and this meant they had never had the
opportunity to experience university life, which is something they all enjoyed.
All staff working for Nazareth Care Charitable Trust are trained in the core values adopted from the
Sisters of Nazareth. As we progress our journey into becoming a Servant Leadership company there
is a working group comprising of sisters, managers and regional staff planning the implementation
process to dovetail the core values and the principles of Servant Leadership together into one
training package.
In the coming year with changes in legislation relating to the provision of social and nursing care, we
will need to examine how best to meet the training needs of our staff in the future.
In Our Care Homes
There have been many activities going on around the region which have enhanced the lives of our
residents.
Nazareth House – Birkenhead
Nazareth House Birkenhead is the hub of the
community and within one square mile of the
house there is a convent, a Catholic grammar
school, the local church and a Carmelite
monastery. It is a true Catholic community many local residents attend mass at Nazareth
House and help as friends. Staff are proud to
work at the house because of its reputation in
the local community. There is a waiting list
which is thanks to recommendations from all
local GPs and community nursing services.
People who have had no previous contact with
the house ring for advice. The reputation of the
house is such that last year we began working
in partnership with the local university to provide placements for student nurses. These nurses have
the opportunity to work alongside the staff and get a true picture of what life in a care home really is
about.
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Recently The Congregation of The Sisters of Nazareth
refurbished the Manor House which included an
extension to the well attended church which has
benefited not just the residents but the community
who use the church; until this upgrade many of the
congregation sat in the corridor to celebrate Mass as
the church was full!
Nazareth House Birkenhead provides both
Residential and Nursing Care to 50 residents and
provides a high level of nursing care to residents with
complex needs.
Nazareth House – Bonnyrigg
The activities at Bonnyrigg really keep the residents active.
The residents at Nazareth House take part every year
in the senior Olympic Games.
“I am really proud of the
Residents, this is the fourth year
Midlothian has run something
like this and we have won twice”.
Gill Corrigan – Activity Coordinator Nazareth
House – Bonnyrigg
All the care homes in Midlothian take
part. Each team consists of six residents,
various games take place - for example,
new age Curling, Boccia, tossing the
caber (made of foam), skittles etc.
Nazareth House won the event. This year
it was called the Midlothian Senior
Commonwealth Games to coincide with
the Commonwealth Games here in
Glasgow. This event is organized by the
ageing well coordinator for Midlothian
and some of it was funded by the
national lottery awards.
This event has been held for four years
now and Nazareth House Bonnyrigg has
won it twice. We also won the best flag design one year and we are all very proud of the residents
here in Bonnyrigg, they are quite competitive!
Also this year, Nazareth House has taken part in an art project. Each home created a piece of art
work relating to Midlothian, we chose the “Old railway station” that used to be in Bonnyrigg. There
were eight homes altogether who took part. The works of art are currently on display in the
“Luminate” exhibition in the Mining museum. Luminate is Scotland’s creative ageing festival and this
year is the first year that Midlothian has taken part in it, so again we are very proud of our residents
who helped to create this piece of art work.
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Nazareth House – Cardiff
Nazareth House Cardiff is a well known institution in the area.
The building has a long history and it is noted for its summer
activities. This year was no exception, the residents’ families
and the local community joined forces for a Summer Tea. The
home also joined in with the First World War commemoration
scheme. To mark the Centenary of the start of the First World
War, Nazareth House has set aside an area of the grounds for
the residents and staff to plant poppies.
This was a national scheme where schools, community groups
and civic bodies have planted thousands of seeds which
added colour, but also will continue to remind people of those
who gave their lives between 1914-1918. The poppies have bloomed and are visited frequently by
all.
Nazareth House Cardiff provides both Nursing and Residential Care to 55 residents.
Nazareth House – Cheltenham
An exciting year for Nazareth House Cheltenham, with
the appointment of a new general manager who is
working to take the team forward. The house has a very
active Friends of Nazareth who work extremely hard to
raise funds.
“I have found my time at
Cheltenham to be challenging and
rewarding. I love it here, and on a
personal note I have found my
place. The support from the Sisters
and Regional Team is wonderful”.
Cheltenham Pop up Room
The home is
undergoing a period of refurbishment and to
date this has included the installation of a new
Jo Moralee General Manager Cheltenham
lift, the refurbishment of the existing lift, new
assisted bathrooms and sluice rooms.
During the year the home had a summer fete,
raising in excess of £3,000. This money has been put towards activity resources for the residents,
which included a dementia care, pop up room. The home now has an iPad for residents’ use, which
is an asset to those residents who are bedbound.
The home is registered to care for 63 residential clients and always enjoys a high occupancy due to
its reputation in the local area.
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Nazareth House – Crosby
Nazareth House Crosby is a residential home catering for 64 residential clients and enjoys a good
reputation in the area. The home has a new General Manager and is looking forward to a bright
future.
This year Nazareth House hosted a family fun
day. We welcomed the residents and their
families and friends to attend. Donations
towards the tombola came in floods as
supporters, staff and the activity coordinator
and acting manager organised the event.
There was a mezzo soprano providing a very
special voluntary appearance singing classical
songs and various other companies supported
the event which made it very special. The
money raised is being used to create a sensory
garden with some of the money being donated
to MND (Motor Neurone Disease society).
Chocolate was a popular prize
Nazareth House – Finchley
Nazareth House Finchley is undergoing a refurbishment program. This will see all residents’ rooms
become en-suite and new communal facilities
for all.
The home has just formed a new “Friends of
Nazareth” fundraising committee, which is
working with both Nazareth Care Charitable
Trust and The Congregation of the Sisters of
Nazareth Charitable Trust to raise funds for
those little extras.
The local demand is such that the home is
considering a nursing unit as it is currently
registered for 84 residential clients, and there
is a need for a nursing provision in the area.
The beautiful grounds and buildings of Finchley House
Nazareth House – Glasgow
Nazareth House Glasgow is continuing to provide a
high standard of care to the community. The house
has been active within the community for in excess
of 100 years and is well known by everyone. The
home is very fortunate to have the last two
collecting Sisters in the UK, who work tirelessly to
raise funds for the home.
“We are looking forward to the
move to the new home, but we
will miss the homely feel of this
one, it is very quirky”
Relative at Nazareth House Glasgow
It is due to the commitment of the Sisters in
community and the staff at Glasgow that they are
shortly to move into a newly built state of the art Care Home, which has been provided for the use
of Nazareth Care Charitable Trust by the Congregation of the Sisters of Nazareth Charitable Trust.
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The residents are excited about the move, but hope the new home is as homely as the one they are
leaving.
Families of residents are very supportive of the home and work with the staff to ensure the very best
standards of care.
The construction of the new 70 bed care home
began in October 2013 on the existing site in
Glasgow and will provide an increased number of
beds. Following the completion of the new Care
Home, the existing building will be converted into
assisted living flats.
To help with the funding for the new build the
Knights of St Columba in Blanytre held a fundraising
evening for the Glasgow Rebuilding Project. The
evening was a great success enjoyed equally by the
Sisters and the local people and everyone's
generosity raised over £1,000.
Nazareth House – Hammersmith
Nazareth House Hammersmith is the Mother House of the Congregation of the Sisters of Nazareth
and attracts many visitors in a year.
The Care Home provides care for Nursing,
Residential and Dementia Care for 95
residents. Victoire Larmenier, foundress of
the Congregation, and two fellow novices of
the Little Sisters of the Poor came in 1851
from Brittany in France at the invitation of
Cardinal Wiseman, in order to provide care
and a home for the aged Catholic poor of
London, who, at the time, had to seek shelter
in workhouses. The site on which Nazareth
House Hammersmith stands was a market
garden until it was sold to the Sisters in 1856
for £3,500. In 1857 the foundation stone was laid and the main block was built and furnished at a
cost of £8,000. These Sisters moved in with 120 elderly poor and 30 handicapped children.
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The house has grown dramatically in size from its humble beginnings in a small, cramped house in
Brook Green. With the continued support of many benefactors and of public authorities, the house
strives to meet the challenges of a growing population of frail older people. The demand is such for
rooms at Hammersmith that we are currently creating 4 additional bedrooms out of some unused
space to meet the need.
Nazareth House – Manchester
Nazareth House Manchester, has an excellent
reputation in the area, it provides nursing care for
those with very complex nursing needs as well as
residential care. The home caters for 61 residents.
The team at Manchester is extremely dedicated to
the provision of palliative care and has enjoyed
considerable recognition for its work.
“The Care is excellent the staff
really care and that’s what
makes all the difference. The staff
always go the extra mile.”
Relative Nazareth House Manchester
The Sister Superior and the General Manager are in the process of establishing a Friends of Nazareth
group to raise funds for the home.
Nazareth House – Northampton
Nazareth House Northampton has taken resident involvement to new heights. The residents are
truly involved in every aspect the management of the home, including a resident chairing many of
the meetings. As with many of our homes, residents participate in the interview process ensuring
that the staff we recruit will truly be able to meet their needs. The manager at Nazareth House
Northampton is taking this even further by involving residents and their families in the induction of
staff.
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The home runs many fundraising events to improve the quality of the lives of residents. These funds
are used to assist staff to recognise special events, such as flowers on Mother’s day. The home has
also been transformed by a team of volunteers that not only raise funds but help with the tasks too.
The residents have a wonderful accessible garden to enjoy all year around, thanks to the help of the
Friends. Each year the General Manager in association with the Sister Superior arranges a Summer
event, this year it was a Summer Lunch.
Given how involved the residents are at Northampton, one of the residents was keen to contribute
to this report. His story is below.
My Life at Nazareth House
“Having decided to come and live at Nazareth House
I was concerned because I didn’t know what to
expect or if I would still be able to do the things that
were important to me or make my own decisions and
choices.
I have been diagnosed with Alzheimer’s and me and
my family needed to know that I would be safe but
also happy with where I was going to live; all my
family and friends come and see me, take me out and
I am always glad to come home to Nazareth House,
my home.
I have a very busy life, I have been involved in
residents’ meetings, in fact I have chaired the
meeting, attended the menu group meeting, helped
interview new staff and have represented my friends
here at Nazareth House; there is always something
happening and I don’t have time to get bored.
We go out and about, I go to the pub regularly and have just had a great day down at Hunstanton,
and the fish and chips were fab; looking forward to the next time. Now we are planning some days
out at Peterborough and Ely, I can feel the pub coming on there as well.
My life is WONDERFUL now, couldn’t be better, great staff, great food, great social life and I
choose!”
Mr Clive Lomax
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Nazareth House - Plymouth
Nazareth House Plymouth, provides both
Residential and Nursing Care for 46
residents. It has been recognised for its
work with Terminal Care Clients.
The home is on the sea front and overlooks
Plymouth Sound. The home is shortly to be
joined by a high quality Retirement Village,
which will further enhance the site. The
home enjoys full occupancy and an
excellent reputation. Despite the home
sitting next to what is currently a building
site, the residents have enjoyed watching
the new retirement village taking shape.
The Village takes shape overlooking Plymouth Sound
Nazareth House - Southend
Nazareth House Southend is one of the few Catholic Care Homes in the area, and enjoys a good
reputation in the local community.
The Original Manor House
Nazareth House Southend was one of the original
homes opened by the foundress. The history of this
house is interesting. From before the time of the
Norman Conquest it was given to the Monks of
Christchurch, Canterbury, by Edward the Confessor,
until the dissolution of the monasteries in 1534, when
the land and possession were taken over by the Crown
(Henry VIII). In 1545 Milton Manor was given to Sir
Richard Rich of Rochford Hall, eventually passing into
the hands of the Scratton family. It was from a
descendant of this family that the house was purchased
by Mother St Basil and returned to “Religious” hands.
Very soon every corner of the Manor was filled with 40
children and 20 aged poor.
It has a great history of generous benefactors and
actively fundraises in the local community.
“Without the help of our dedicated staff
we would not be able to carry out our
Ministry to the elderly. We owe them
and also our friends, benefactors and all
those who help us in any way a deep
debt of gratitude. May God bless and
reward each of them and their families
for their ongoing support to Nazareth
House.” Sr Brigid
18
Nazareth House – Lancaster
Nazareth House Lancaster has a real community feel. The services provided at the home are
complemented by a very devoted fundraising team. Over the years they have raised funds for many
different projects, and now the residents can enjoy a sensory garden too.
The House is registered for 26 residential clients and 15
nursing clients.
Nazareth House Lancaster displays one of the core
values every two months. We highlight when people
are living by the core value and specify that value. We
also have a nomination scheme, where all the Nazareth
family can vote for an individual they feel shows the
core values in their work. Prizes are given to the
person/s who receives most votes.
Retirement Villages
Currently Larmenier Retirement Village Blackburn is the Charity’s only operational Retirement
Village in the UK; it is shortly to be joined by a second in Plymouth.
Until the end of 2012/13, the Charity’s role was to lead and supervise the Congregation’s program of
developing retirement villages on Nazareth house sites across the UK region. For this purpose, the
Charity has set up two wholly owned trading subsidiaries, NRV Development (Blackburn) Limited and
NRV Development (Plymouth) Limited, to act as the developers of the sites.
The primary aim of the retirement village program is to provide self-contained apartments, designed
for ease of use by older people who want to be able to maintain their independence but to
recognise that they may, now or in the foreseeable future, need additional support. This
complements the work of the Charity’s care homes, these days increasingly occupied by frail older
people in need of nursing care, both because of local and health authority funding restrictions and of
the desire of older people to remain in their family homes for as long as possible.
The secondary aim of the retirement village program is to generate capital receipts from the sale of
apartments, by realising some of the considerable equity value in existing Nazareth sites and
through development surpluses. The trustees intend to apply any surpluses gifted to the Charity by
its trading subsidiaries to projects that help the poor and those in need, in line with the Charity’s
main objectives.
Retirement village accommodation provides an alternative to residential care the offers continuity in
terms of self-contained accommodation, coupled with the flexible support that can accommodate
changing needs, even for those whose physical frailties are quite advanced. The Charity’s offering
includes daily Mass at the on-site chapel, complementing physical support with an environment of
spiritual calm.
19
The Larmenier Retirement Village Blackburn
Our retirement village at Blackburn has really started to flourish with the completion of the stunning
phase 2 apartments. The village is more vibrant and the place to live! There are two committees in
operation, one which works with the regional team in planning and managing the service charge
budget which includes a sinking fund. The second committee, a social committee, keeps the village
alive and active.
There is no community of Sisters on site, but the pastoral needs of residents are met by a resident
Chaplin and a visiting Sister from Nazareth House Lancaster.
Nursery Provision
Lancaster Day Nursery
Following the refurbishment of the nursery in
Lancaster and the official opening, the nursery
has gone from strength to strength. In
February 2013 we created an area of
woodland with the help of ‘Green Partnership
Awards’ staff and parents which we call ‘Our
Woodland Nursery’.
This is a natural learning environment which allows
our children the opportunity to explore, discover,
experiment and respect all living things which
supports their learning process.
They have the freedom to use their senses and be physically active by making dens, climbing trees,
games, practical tasks and sensory activities. They learn to take risks which builds up their
confidence and self esteem. Outdoors our children experience the seasonal changes which is vital for
20
their Health and Wellbeing. We also encourage children to try out new challenges and skills which
show a feeling of excitement and delight with achievements.
We are constantly developing our ‘Woodland
Nursery’ and our new addition to the woodland is
‘Snowdrop Cottage’. The area has proved to be an
additional asset to the nursery where children and
staff are able to make the most of our outdoor
space and we have had many positive comments
and feedback from the parents and their families.
Whilst Lancaster Day Nursery is the last
association with Child Care the Charity has, this
vibrant nursery is a credit to the Manager and her
team.
Cardiff Day Nursery
It is with deep regret that the trustees have taken the decision to close the nursery in Cardiff. This
decision has been taken as the take up of nursery placements has declined considerably, due mainly
to a number of new nurseries opening in the local area. The Manager and her team of staff have
implemented several new initiatives to increase the occupancy but, given the financial position of
the nursery and the financial support it has needed from the region to date, it has been necessary to
take the decision to close the nursery with effect from 6 November 2014
Nazareth Catering Limited
Nazareth Catering Limited became an operational company in April 2012 and provides catering
supplies to care villages for sale within the village restaurants. This operation has enabled the care
villages to enjoy notable cost volume reductions.
Nazareth Home Care Limited
Nazareth Home Care Limited was established in March 2013 with a view to providing additional
personal domiciliary care to those residents who require it within the two Nazareth retirement
villages. This company, at the current time, has begun to supply care at our Blackburn site and will
be expanded to Plymouth when the village opens.
Other subsidiaries
The Charity has two wholly-owned subsidiaries, NRV Development (Blackburn) Limited and NRV
Development (Plymouth) Limited, which (as described above) are developing retirement villages at
Blackburn and Plymouth respectively. Prior to 22 June 2012, the names of these subsidiary
companies were VLF (Blackburn) Limited and VLF (Plymouth) Limited respectively. The name
changes follow the Congregation’s restructure and revised branding in the UK, when the decision
was taken to centre the brand on the name “Nazareth” and to develop new retirement villages in
the UK under the brand name Nazareth Retirement Villages.
In 2012 the Charity accepted the transfer into its sole ownership of CVE (Blackburn) Limited, a
service charge management company previously owned by an associated company - Wyngates Care
Services (WCS). WCS was a member of the group of companies that had been working in
partnership with the Charity in its program of retirement village developments. This transfer was
part of a wider settlement that extinguished any entitlement of WCS to share in future surpluses
arising from the retirement village program.
21
Following the transfer, CVE (Blackburn) Limited was re-named NRV (Blackburn) Limited in line with
the rebranding referred to above. The name change was registered at Companies House on 22 May
2012.
In order to provide a management service company for the care village at Plymouth in due course,
NRV (Management) Plymouth Limited was established on 25 March 2013. To date it has remained
dormant.
Together with the Charity, these companies constitute the Nazareth Care Charitable Trust Group
(herein known as “the Group”).
A Future full of Hope
The Charity needs to consolidate the changes made to the organisation, whilst implementing
Servant Leadership ensuring that People remain our focus.
We need to ensure we are maintaining and improving the buildings we rent from the Congregation
of the Sisters of Nazareth Charitable Trust. This will need both careful planning and strategically
planned funding, from both internal and external funding and banking streams.
We need to actively market the remaining apartments at Blackburn and Plymouth to ensure we
meet out financing agreements and to build relationships with our banks.
We need to ensure that our services are meeting the needs of local areas by building on our
relationships with local authorities and Clinical Commissioning Groups to make provision for the
services need at each location.
We will be developing links with Religious Orders to offer a consultancy service to help them manage
their services in the UK, in a similar way to our relationship with the Congregation of the Sisters of
Nazareth.
We will be examining the possibility of expanding Nazareth Home Care Services where appropriate
to create a genuine synergy between home care, retirement villages and care homes.
We will be reconsidering our capital fundraising strategy in the coming year to ensure we have
sufficient additional funds to support our plans. Our 5 year plan takes us to 2018 and if we achieve
everything we set out to do, the future will certainly be not just hope but also achievement.
Risk Management
During the year, the Trustees, with the assistance of the Charity’s management team, identified and
considered the key risks that the charity and its subsidiaries might be exposed to and developed a
risk register. The risks included both those relating to the operation of care homes and nurseries
and those relating to the development of the retirement villages and the sale and subsequent resale
of apartments etc. Actions were agreed to monitor and mitigate the risks identified.
The Trustees are now provided with the Charity’s detailed risk register for review at every Trustee
meeting to ensure that, as far as possible, all steps have been taken to identify any further risks and
to mitigate all risks.
22
Financial Report of the Year
Incoming and Outgoing Resources
A summary of results can be found on page 30 of the attached financial statements.
Financial Position
The Group’s incoming resources decreased from £27.6 million to £24.2 million. Within this total,
£21.7 million represents the incoming resources in connection with the provision of residential and
care services for older people and £0.8 million represents the incoming resources from the provision
of nursery services.
Resources expended increased from £22.0 million to £22.8 million at Group level. Within this total,
£20.7 million represents the resources expended in connection with the provision of residential and
care services for older people and £0.65 million represents the resources expended in respect to the
provision of nursery services. Governance costs are minimal at £65,100.
The day to day operations of the Charity resulted in a profit for the year which was partially offset by
losses in the subsidiary companies.
The net assets of the Group at 31 March 2014 amounted to £6.9 million whilst those of the Charity
totaled £7.3 million.
Reserves Policy
At 31 March 2014, neither the Charity nor the Group had substantial reserves.
The tangible fixed assets fund of £2.4 million represents the net book value of the Charity’s tangible
fixed assets. These assets are essential to the continued mission of the Charity and include the
improvements to care homes and the furniture and equipment used in those care establishments.
The general fund comprises those assets not designated by the Trustees or restricted in their
application as at 31 March 2014. The fund includes monies to cover temporary shortfalls in
incoming resources due to timing differences and amounts to enable the Charity to cope with
unforeseen emergencies.
The Trustees have agreed to work towards a reserve of funds equivalent to six months operating
costs in the knowledge that a larger positive reserve balance needs to be built up in due course. The
restructure that has occurred over the past few years now needs to be consolidated and a period of
reflection is required in order that the Trustees may assess the future needs of the Charity in the
light of its mission and future plans, in particular future refurbishment and development
requirements.
Any surplus taxable funds arising in the subsidiaries may, from time to time, be donated to the
Charity by Gift Aid.
23
Management and Trustees
Trustees’ Responsibilities
The Trustees (who are also directors of the Charity for the purposes of company law) are responsible
for preparing the Trustees’ report and financial statements in accordance with applicable law and
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which
give a true and fair view of the state of affairs of the Charity and the Group and of the incoming
resources and application of resources, including the income and expenditure, of the Charity and
Group for that period.
In preparing these financial statements, the Trustees are required to:





select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Statement of Recommended Practice (Accounting and
Reporting by Charities) (the Charities’ SORP);
make judgments and estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to
any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the charitable company will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable
accuracy at any time the financial position of the Charity and enable them to ensure that the
financial statements comply with the Companies Act 2006, the Charities and Trustee Investment
(Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also
responsible for safeguarding the assets of the Charity and the Group and hence were taking
reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the Trustees confirms that:


So far as the Trustee is aware, there is no relevant audit information of which the Charity’s
auditor is unaware; and
The Trustee has taken all the steps that he/she ought to have been taken as a Trustee in order to
make himself/herself aware of any relevant audit information and to establish that the Charity’s
auditor is aware of that information.
This information is given and should be interpreted in accordance with the provisions of the s418 of
the Companies Act 2006.
Governance
The charity is governed by its Trustees. The Trustees are appointed by the Superior General of the
Congregation.
The principal property assets of the Congregation in England, Wales, Scotland and Northern Ireland
are held on charitable trust by The Congregation of the Sisters of Nazareth Charitable Trust and by
The Congregation of the Sisters of Nazareth Generalate. With effect from 1 April 2012, the Regional
Superior of the Congregation’s UK region became the Chair of Trustees ex officio. The Regional
Councilors of the Congregation’s UK region also became ex officio trustees.
24
Two additional Sisters and lay Trustees may be appointed by the Superior General to ensure that the
necessary breadth of skills and experience is available to the Charity’s governing body. Details of all
the Trustees can be found in the Reference and Administrative Details on page 3 of the Annual
Report and Audited Financial Statements and also below.
Newly appointed Trustees are given induction training that includes meetings with staff, meetings
with representatives of partner organisations and visits to retirement village development sites.
Ongoing training opportunities will be provided as necessary as the work of the Charity develops.
The Current Trustees
Sister Anna Maria Doolan – Chair
Sister Anna Maria trained as a Registered General Nurse, and has recently completed a postgraduate
diploma in leadership and management at Loughborough University. She has worked as a care home
manager at a number of care homes in the UK and Ireland and was appointed Superior at Nazareth
House Lancaster in 2006. She became a Regional Councilor of the UK region in 2009 and was
appointed Regional Superior in October 2012, taking up her new post in December 2012, when she
also took over as chair of both this Charity and the Congregation of the Sisters of Nazareth
Charitable Trust.
Sister Sheila Collingborn
Sister Sheila is a graduate of Reading University with a PGCE from Cavendish Square College. She has
taught in Southampton, Uganda and London and for over 20 years was responsible for a Montessori
school in American Samoa. While there, she also served on several boards concerned with adult
education and young people with disabilities.
Sister Teresa Bernadette Fallon
Sister Teresa trained as a Registered General Nurse at Southampton University Hospital in the 1970s
and has worked as a care home manager at several Nazareth Houses in the United Kingdom,
Northern Ireland and Australia. She has completed courses on Social Work Management, Health
Education and Continuing Care of the Dying Patient and Family. She was appointed Superior at
Nazareth House Cheltenham in 2006 and became a Regional Councilor for the UK Region in
November 2012. She is currently Sister Superior at Nazareth House Cardiff.
Sister Rose Ita Doody
Sister Rose Ita trained as a catering manager and has worked in the number of houses in the Irish
and UK region. She was appointed Superior and Care Manager in Lancaster in 2000 and moved to
Crosby in 2006. She completed a foundation degree on vulnerable adults at Edge Hill University and
more recently a postgraduate diploma in leadership and management at Loughborough University.
She is currently Sister Superior at Nazareth House Finchley.
Sister Madeline Merriman
Sister Madeleine Carmel Merriman has completed a post graduate diploma in leadership and
management at Loughborough University. She has worked as a Child Care Manager in several houses
in the UK and served as a school governor for 10 years. Sister completed a Diploma in Counselling at
the University of Lancaster. She was appointed as Superior at Nazareth House Northampton in 2009
and at Crosby in 2013. She became a Regional Councillor in 2014 for the UK Region.
25
Father John Martin
Father John Martin has a wide and varied experience in the field of health care and management. He
has been a Brother of Saint John of God for 33 years. During that time he has worked in the areas of
pastoral care, social work and management and was Chief Executive of the Hospitaller Order of Saint
John of God for 12 years. On leaving the Order he joined the Priesthood and is now a Priest in the
Diocese of Nottingham and is the Bishops Delegate for the Youth of the Diocese as well as managing
a Parish. John brings with him a vast amount of experience in being a trustee.
Mrs Margaret Hysel
Maggie has over 30 years’ experience of working in the health and social care within the statutory
and voluntary sectors as a practitioner with a specific emphasis on mental health specialising in
childcare, family therapy and later in care and support of the elderly, moving on to management and
leadership roles. After 11 years in the post she has recently stood down as the Chief Executive of
Richmond Fellowship, a national mental health charity and housing association which grew to
employing over 1,000 staff supporting over 9,000 service users annually. She has contributed as a
member to numerous government policy working groups and has been a founder member of a
number of specialist umbrella forums to represent and champion the needs of marginalised and
disadvantaged people. She was appointed a Trustee in May 2013.
Paul Williams
Paul is a Fellow of the Institute of Chartered Accountants in England & Wales and for over 25 years
was a Partner in what is now Deloitte LLP. His client service role included membership for many
years of the firm’s Voluntary Sector Group. Paul managed significant parts of the Firm’s business in
London, Berkshire and Sussex for over 20 years and for 5 years he was National Director of HR on
the firm’s Executive Committee. Paul was subsequently elected to the Board of Partners. Following
ill-health, he stood down from the Firm in 2008. From 2010, Paul informally assisted the UK Region
of Nazareth House, before being appointed as a Trustee in 2014. Paul has held appointments within
Catholic institutions, including 10 years on the Finance Committee of Westminster Archdiocese and
is currently Chairman of the Ampleforth Lourdes Hospitalité.
Structure and Management Reporting
The regional CEO has day-to-day responsibility for managing the Charity together with colleagues
from the UK region, three of whom report directly to the Trustees at the scheduled meetings during
the year.
The Trustees are provided with written material setting out the matters that are to be discussed at
these meetings for consideration prior to the meetings taking place. Until April 2012, the Trustees
used a subcommittee to review financial and operational reports and forecasts in depth prior to any
Trustees’ meeting. However, it was felt that as all the Trustees had a responsibility in this area the
subcommittee should be disbanded. During the year the Chair of Trustees meets regularly with the
regional CEO as required to provide any necessary advice and guidance and prior to meetings to
agree agendas.
The Property Director acts as principal liaison between the Charity and the regional director of
Wyngates Care Services, (WCS) the company appointed to act as project manager for the current
care village developments. WCS provides progress reports to the CEO and also, as appropriate, to
the Trustees.
Management Reporting
The Trustees are ultimately responsible for all the policies, activities and assets of the Charity and
the Group. They meet regularly, at least four times each year, to review developments with regard
to the activities of the Charity and the Group and to make any important decisions. When necessary,
26
the Trustees seek advice and support from the Charity’s professional advisers, including property
consultants, investment managers, solicitors and accountants.
Communication and Technology
Nazareth Care Charitable Trust has a sophisticated in-house comprehensive care management
system that has been performing well and is liked by users. It includes integrated modules dealing
with financial accounting and asset management and also has a project management module that is
being used to support the retirement village developments. Following the introduction of the
financial module across all houses during 2011, it has been possible to streamline the finance
staffing structures with most processing, including that of payroll, now taking place in the regional
office. The management information system produces standard reports but can be flexibly
interrogated also by managers at all levels. In addition to this, the region has purchased a risk
management software package to further enhance the organisation’s ability to manage risk
effectively.
The Nazareth intranet has now been live for two years and is widely used across the UK region by
the management team and it is anticipated that within the next six months the majority of staff will
have access to the system following a regional wide roll-out.
During the year a new international website was launched for the Congregation with input from the
UK region and this will continue to be enhanced overcoming months.
Nazareth Care Charitable Trust remain committed to providing staff with appropriate technology
and is currently replacing over 60 desk top computers as part of an ongoing investment in this area.
Fixed Assets
The acquisition and disposal of tangible fixed assets during the year is recorded in the notes to the
financial statements.
Stocks and Work in Progress
In the light of the selling price of Blackburn phase 1 units and the interest shown in the purchase of
apartments comprising phase 2A, the Trustees are of the opinion that the value of stocks and work
in progress is not less than the historic cost figure recorded on the Group’s balance sheet.
The above Trustees’ Report (including the Strategic Report) were approved by the trustees and
signed on their behalf by:
Trustee
Date of approval:
27
Independent Auditor’s Report to the Trustees and Member of Nazareth Care
Charitable Trust
31 March 2014
Introduction
We have audited the financial statements of Nazareth Care Charitable Trust for the year ended 31
March 2014 which comprise the Group and parent charity statement of financial activities, the
Group and parent charity balance sheet, the group cash flow statement, the principal accounting
policies and the related notes. The financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice).
The report is made solely to the Charity’s member, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006 and to the charity’s Trustees as a body, in accordance with Section 44(1)(c) of
the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities
Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might to
states to the Charity’s member and Trustees those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Charity, the Charity’s member and the charity’s
Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Trustees and Auditor
As explained more fully in the Trustees’ Responsibilities Statement set out in the Trustees’ Report,
the Trustees (who are also the directors of the charitable company for the purposes of company law)
are responsible for the preparation of financial statements and for being satisfied that they give a
true and fair view.
We have been appointed auditor under section 44(1)(c) of the Charities and Trustee Investment
(Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations
made under those Acts. Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International Standards of Auditing (UK and
Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical
Standards for Auditors.
Scope of the Audit of the Financial Statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or error. This includes an assessment of: whether the
accounting policies are appropriate to the group’s and the parent charitable company’s
circumstances and have been consistently applied and adequately disclosed; the reasonableness of
significant accounting estimates made by the Trustees; and the overall presentation of the financial
statements. In addition, we read all the financial and non-financial information in the Trustees’
Report (including the Strategic Report) to identify material inconsistencies with the audited financial
statements and to identify any information that is apparently materially incorrect based on, or
materially inconsistent with the knowledge acquired by us in the course of performing the audit. If
we become aware of any apparent material misstatements or inconsistencies we consider the
implications for our report.
28
Opinion on Financial Statements
In our opinion the financial statements:



give a true and fair view of the state of the Group’s and the parent charitable company’s affairs
as at 31 March 2014 and of the Group’s and the parent charitable company’s incoming resources
and application of resources, including the Group’s and parent company’s income and
expenditure, for the year ended;
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice: and
have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act
2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as
amended) and the Companies Act 2006.
Opinion on Other Matter Prescribed by the Companies Act 2006
In our opinion the information given in the Trustees’ Report (including the Strategic Report) for the
financial year for which the financial statements are prepared is consistent with the financial
statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 and
the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in
our opinion:




the parent charitable company has not kept proper and adequate accounting records or returns
adequate for our audit have not been received from branches not visited by us; or
the parent charitable company’s financial statements are not in agreement with the accounting
records or returns; or
certain disclosures of Trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Simon Goodridge, Senior Statutory Auditor
For and on behalf of Buzzacott LLP, Statutory Auditor
130 Wood Street
London
EC2V 6DL
Date:
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
29
Group and Charity Statement of Financial Activities
Year Ended 31 March 2014
Group
Income and expenditure
Incoming resources from
generated funds
. Activities for generating funds
. Donations and legacies
.. General donations
.. Donation from CSNCT
Incoming resources from
charitable activities
. Charges for residential and
care services
. Charges for nursery services
Other incoming resources
. Miscellaneous income
Charity
Notes
Unrestricted
funds
£
Restricted
funds
£
Total
2014
£
2
1,101,997
—
3
3
—
197,440
92,972
—
21,742,297
780,918
—
—
266,843
—
24,089,495
92,972
1,402,213
—
5 20,611,437
6
653,862
7
65,100
Total
2013
£
Unrestricted
funds
£
Restricted
funds
£
Total
2014
£
Total
2013
£
1,101,997
624,152
—
—
—
—
92,972
197,440
686,367
4,179,543
—
197,440
92,972
—
92,972
197,440
686,367
4,179,543
21,742,297 21,337,416
780,918
790,425
21,742,297
780,918
—
—
—
266,843
—
24,182,467 27,617,903
22,987,498
92,972
747,844
—
—
98,227
—
—
20,709,664 20,453,553
653,862
753,629
65,100
88,023
20,611,437
653,862
46,350
98,227
—
—
20,709,664 20,453,553
653,862
753,629
46,350
66,500
22,732,612
98,227
22,830,839 22,043,049
21,311,649
98,227
21,409,876 21,273,682
1,356,883
(5,255)
1,351,628
5,574,854
1,675,849
(5,255)
1,670,594
5,720,069
Fund balances brought
forward at 1 April 2013
5,528,012
5,255
5,533,267
(41,587)
5,688,757
5,255
5,694,012
(26,057)
Fund balances carried forward
at 31 March 2014
6,884,895
—
6,884,895
5,533,267
7,364,606
—
7,364,606
5,694,012
Total incoming resources
Cost of generating funds
Charitable activities
. Provision of residential and
care services
. Provision of nursery services
Governance costs
4
Total resources expended
Net movement in funds (i.e
net income (expenditure))
8
266,843
21,742,297 21,337,416
780,918
790,425
1,402,213
266,843
—
23,080,470 26,993,751
—
—
The Group and Charity have no recognised gains and losses other than those shown above and
therefore no separate statement of total recognised gains and losses has been prepared.
There is no difference between the net movement in funds stated above and the historical cost
equivalent.
All of the Group’s and Charity’s activities during the above two financial periods were continuing.
30
Group and Charity Balance Sheet
31 March 2014
Group
Fixed assets
Tangible assets
Investments
Current assets
Stocks and work in progress
Debtors
Cash at bank and in hand
Creditors: amounts falling due
within one year
Charity
Notes
2014
£
2013
£
2014
£
2013
£
11
12
2,402,317
—
1,465,234
—
2,402,315
6
1,465,232
6
2,402,317
1,465,234
2,402,321
1,465,238
6,794,201
1,158,618
6,858,198
6,209,362
1,208,755
5,827,760
—
1,196,099
6,601,825
—
1,200,185
5,542,494
14,811,017
13,245,877
7,797,924
6,742,679
(3,010,801)
(2,329,979)
(2,513,905)
13
14
15 (2,847,644)
Net current assets
11,963,373
10,235,076
5,467,945
4,228,774
Total assets less current
Liabilities
14,365,690
11,700,310
7,870,266
5,694,012
Creditors: amounts falling due
after one year
Provision for liabilities
16 (7,375,192)
17
(105,603)
Total net assets
Represented by:
Funds and reserves
Restricted funds
Unrestricted funds
. Tangible fixed assets fund
. General fund
(6,079,440)
(87,603)
(505,660)
—
—
—
6,884,895
5,533,267
7,364,606
5,694,012
18
—
5,255
—
5,255
19
2,402,317
4,482,578
6,884,895
1,465,233
4,062,779
5,533,267
2,402,315
4,962,291
7,364,606
1,465,232
4,223,525
5,694,012
20
Approved by the Trustees on and signed on their behalf by:
Trustee
Date of approval:
Company Registration Number: 05518564 (England and Wales)
Charity Registration Numbers: 1113666 (England and Wales) and SCO42374 (Scotland)
31
Group Cash Flow Statement
Notes
Net cash inflow from operating activities
2014
£
A
2014
£
2013
£
1,139,058
Returns on investments and servicing of
finance
Interest paid
1,510,968
—
Capital expenditure and financial
investment
Capital expenditure
Payments to acquire tangible fixed assets
Loss on disposal of tangible fixed assets
(19,829)
(1,178,435)
(6,908)
Net cash inflow before financing
2013
£
(1,197,665)
—
(46,285)
293,474
Financing
Capital repayments of loan
New loans received during the year
(799,025)
1,875,748
—
5,521,138
Net cash inflow from financing
B
1,076,723
5,521,138
Increase in cash
C
1,030,438
5,814,612
Increase in cash in the period
Net cash inflow from financing
Change in net debt
Net debt at 1 April 2013
Net debt at 31 March 2014
1,030,438
(1,076,723)
5,814,612
(5,521,138)
(46,285)
(891,726)
(938,011)
293,474
(1,185,200)
(891,726)
A Adjustment of Net movement in funds to Net Cash Inflow from Operating Activities
Net movement in funds
Depreciation charge
Non-cash assets donated from the Congregation of the Sisters of Nazareth
Generalate
Interest payable
Increase in stock
(Decrease) increase in debtors
Increase in creditors
Increase in provision
Net cash inflow from operating activities
2014
£
2013
£
1,351,628
248,260
5,574,853
255,098
—
—
(584,839)
50,138
55,871
18,000
1,139,058
678,243
19,829
(4,941,282)
(459,446)
370,173
13,500
1,510,968
32
B Reconciliation of Net Cash Flow to Movement in Net Debt
2014
£
Increase in cash in the year
Cash (inflow) from loans
1,030,438
(1,076,723)
Change in net debt resulting from cash flow
(46,285)
2013
£
5,814,612
(5,521,138)
293,474
Net debt at 1 April 2013
(891,726)
(1,185,200)
Net debt at 31 March 2014
(938,011)
(891,726)
C Analysis of Net Debt
At
1 April
2013
£
Cash in hand and at bank
Debt due after more than one year
Debt due within one year
Cash
flows
£
At
31 March
2014
£
5,827,760
(6,079,440)
(640,046)
1,030,438
(1,295,752)
219,029
6,858,198
(7,375,192)
(421,017)
(891,726)
(46,285)
(938,011)
33
Principal Accounting Policies
Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance
with the requirements of the Charities Act 2011, the Charity’s Accounts (Scotland) Regulations 2006
and the Companies Act 2006. Applicable United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice) and the Statement of Recommended Practice “Accounting
and Reporting by Charities” (SORP 2005) have been followed in the preparation of these financial
statements.
Going Concern
During the year, NRV Development (Blackburn) Limited (the Subsidiary) continued the construction
of Phase 2A of the retirement village at Preston New Road, Blackburn. In March 2012, the Trustees
of the Congregation of the Sisters of Nazareth Generalate agreed to provide a three-year unsecured
loan facility of £4.2million to the Subsidiary, being the estimated total cost of Phase 2A, to sustain
the Subsidiary whilst negotiations with commercial banks were concluded. The loan attracts interest
of 4.5% above the official Bank Rate of the Bank of England. The balance outstanding on this facility
amounted to £2,377,068 at 31 March 2014 (2013 - £2,150,630), plus accumulated interest of
£212,427 (2013 - £103,565).
On 5 November 2012 the Subsidiary agreed a development term loan facility with The Royal Bank of
Scotland plc for £3 million in respect to Phase 2A. The period of the loan is 18 months from the date
on which the first tranche is drawn down or the sale completion date of the final unit to be sold,
whichever is earlier. The loan will finance the rest of the construction of Phase 2A. The loan attracts
interest of 3.5% above the official Bank Rate of the Bank of England and is secured by way of a
formal charge over the development site.
The Trustees consider these loan facilities to be sufficient to enable the Subsidiary to continue
trading and to meet its liabilities as and when they fall due for a period of at least 12 months from
the date the financial statements are signed.
The Trustees are of the opinion that the net realisable value of the stock and work in progress at the
balance sheet date was in excess of the value included on the balance sheet.
Given the above, the Trustees consider it appropriate to prepare the financial statements on a going
concern basis which assumes that the Group and the Charity will continue in operational existence
for the foreseeable future.
Basis of Consolidation
The Group’s statement of financial activities and the Group’s balance sheet consolidate the financial
statements of the Charity and the following subsidiaries:



NRV Development (Blackburn) Limited
NRV Development (Plymouth) Limited
NRV Blackburn Limited
Three further subsidiaries: NRV Management (Plymouth) Limited, Nazareth Catering Limited and
Nazareth Home Care Limited have not been consolidated into the Group’s financial statements as
their activities, assets and liabilities are not deemed material.
34
Incoming Resources
Incoming resources are recognised in the period in which the Group or Charity is entitled to receive
them and the amounts can be measured with reasonable certainty. Income is deferred only when
the Group or Charity has to fulfill conditions before becoming entitled to it or where the donor of
funder has specified that the income is to be expended in future accounting periods.
Legacies are included in the statement of financial activities when the Group or Charity is advised by
the personal representative of an estate that payment will be made or property transferred and the
amount involved can be quantified.
Resources Expended and the Basis of Apportioning Costs
Expenditure is included in the statement of financial activities when incurred and includes
attributable VAT which cannot be recovered.
Resources expended include the following:



The costs of generating funds comprise of the development of retirement villages in Blackburn
and Plymouth and the provision of comprehensive and flexible services to residents at the
retirement village in Blackburn.
The costs of charitable activities comprise expenditure on the Group’s or Charity’s primary
purpose as described in the Trustees’ report and include:
o Provision of residential and care services including the running costs of the individual care
homes operated by the Group or Charity.
o Provision for nursery services for preschool children.
Governance costs include expenditure on central administration and compliance with the
constitutional and statutory requirements.
In allocating expenditure to headings, no significant apportionments have had to be used.
Tangible Fixed Assets
All assets and improvements to existing assets with the cost of more than £1,500 and with an
expected useful life exceeding one year are capitalised. As permitted under the transitional
arrangements of Financial Reporting Standard 15 (FRS 15), the Group and Charity have opted to
adopt a policy of not revaluing their tangible fixed assets, which are stated at cost.
A review for impairment of a tangible fixed asset is carried out if events or changes in circumstances
indicate that the carrying amount of any tangible fixed asset may not be recoverable.
Leasehold Interest and Improvements
The leasehold interest comprises £1 and represents the residual investment value of a 999-year
lease on a site in Blackburn which is being developed into a retirement village. It is not depreciated.
Leasehold improvements are included in the financial statements at cost. They are depreciated at a
rate of 2% per annum on a straight-line basis once there are 50 or fewer years of the lease
remaining.
Other Tangible Fixed Assets
Other tangible fixed assets are capitalised and depreciated at the following annual rates in order to
write them off over their estimated useful lives.
35


Furniture and equipment 10% per annum on the straight-line basis
Motor vehicles 25% per annum based on reducing balance.
Assets are depreciated once they are brought into use.
Fixed Asset Investments
Investments in subsidiary companies are included on the balance sheet at cost.
Stocks and Work in Progress
Stocks and work in progress represent land and buildings under development. Work in progress and
consumables are valued at the lower of the costs and net realisable value. The land and building
costs comprise the costs of the land, materials, directly attributable interest and other services
related to the development and construction of the properties.
Deferred Taxation
Deferred tax is recognised in respect to all timing differences that have originated but not reserved
at the balance sheet date where transactions or events have occurred at the dates that will result in
an obligation to pay more, or a right to pay less or to receive more, tax.
Funds Structure
Restricted funds represent voluntary income received to the benefit of specific homes.
The remainder of the Group’s and Charity’s funds are unrestricted. Within the unrestricted funds,
the tangible fixed assets fund represents the net book value of the Charity’s tangible fixed assets.
These assets are essential to the continued mission of the Charity and include the improvements to
care homes and the furniture and equipment used in those care establishments.
The general fund represents those monies which are freely available for application towards
achieving any charitable purpose that falls within the Charity’s charitable objects.
Services Provided by Members of the Congregation
For the purposes of these accounts, no monetary value has been placed on the care, administrative
and other services provided by the members of the Congregation.
36
Notes to the Financial Statements
1. Activities of the Subsidiary Companies
A summary of the financial statements of the following subsidiary companies which traded during
the year is as follows:
Turnover
Cost of sales
Administrative costs
Rental income
Other operating costs
Governance costs
Interest payable and similar charges
Gift Aid donation
(Loss) profit before taxation
Taxation
NRV
Development
(Blackburn)
Limited
£
NRV
Development
(Plymouth)
Limited
£
NRV
Blackburn
Limited
£
Total
2014
£
Total
2013
£
735,039
(500,474)
—
—
169,920
(199,430)
904,959
(699,904)
287,171
(194,825)
234,565
—
(29,510)
205,055
92,346
(360,912)
—
—
(6,749)
(162,943)
—
(16,924)
—
—
(6,000)
—
—
(161,530)
197,038
—
(5,998)
—
—
(539,366)
197,038
—
(18,747)
(162,943)
—
(437,069)
336,981
(14,121)
(16,400)
(19,829)
(82,000)
(530,604)
(22,924)
29,510
(524,018)
(232,438)
(296,030)
(22,924)
—
(318,963)
(140,092)
—
—
—
—
16,400
(Loss) profit for the financial year
(296,030)
(22,924)
—
(318,963)
(123,692)
Capital and services
Called up share capital
Profit and loss account
1
(487,634)
1
(34,132)
1
24
3
(521,742)
3
(216,642)
Shareholder’s funds
(487,633)
(34,131)
25
(521,739)
(216,639)
NRV Development (Blackburn) Limited – Responsible for the development of a retirement village in
Blackburn.
NRV Development (Plymouth) Limited – Responsible for the development of a retirement village in
Plymouth.
NRV Blackburn Limited – A company providing comprehensive and flexible services, including
laundry and cleaning, gardening and general handyman services to residents at the retirement
village in Blackburn.
In addition there were three further subsidiary companies:
NRV Management (Plymouth) Limited – Provides management services at the retirement village in
Plymouth.
Nazareth House Care Limited – Provides domiciliary care services.
Nazareth Catering Limited – A company providing catering services to the retirement villages.
These three subsidiaries have not been consolidated in the group’s financial statements as their
activities, assets and liabilities are not deemed material.
Financial statements for each company will be filed with the Registrar of Companies in due course.
37
2. Activities for Generating Funds
Unrestricted funds
Group
Commercial trading operations of subsidiaries
Rental income
2014
£
2013
£
904,959
197,038
1,101,997
287,171
336,981
624,152
The Charity received no income from activities for generating funds (2013 – none).
3. Voluntary Income
Group and Charity
Donation from The Congregation of the Sisters of
Nazareth Charitable Trust (note 22)
Other donations
Restricted
funds
£
2014
Total
funds
£
2013
Total
funds
£
—
92,972
92,972
197,440
92,972
290,412
4,179,543
686,367
4,865,910
Unrestricted
funds
£
Restricted
funds
£
2014
Total
funds
£
2013
Total
funds
£
1,239,270
162,943
1,402,213
—
—
—
Unrestricted
funds
£
197,440
—
197,440
4. Cost of Generating Funds
Group
Commercial trading operations of subsidiaries
Interest payable
1,239,270
162,943
1,402,213
728,015
19,829
747,844
The Charity incurred no expenditure on the cost of generating funds (2013 – none).
5. Residential and Care Services
Group and Charity
Staff costs
Premises
Care and welfare
Central management staff costs
Depreciation
Unrestricted
funds
£
12,888,597
1,549,723
5,119,031
809,053
245,033
20,611,437
Restricted
funds
£
2014
Total
funds
£
2013
Total
funds
£
—
—
98,227
—
—
98,227
12,888,597
1,549,723
5,217,258
809,053
245,033
20,709,664
13,443,586
1,366,223
4,614,974
719,581
309,190
20,453,553
38
6. Provision of Nursery Services
Group and Charity
Staff costs
Premises
Care and welfare
Central management staff costs
Depreciation
Unrestricted
funds
£
476,874
12,199
132,356
29,206
3,227
653,862
Restricted
funds
£
2014
Total
funds
£
2013
Total
funds
£
—
—
—
—
—
—
476,874
12,199
132,356
29,206
3,227
653,862
609,169
28,280
80,785
32,606
2,789
753,629
Restricted
funds
£
2014
Total
funds
£
2013
Total
funds
£
—
—
—
60,500
4,600
65,100
81,023
7,000
88,023
Restricted
funds
£
2014
Total
funds
£
2013
Total
funds
£
—
—
—
41,750
4,600
46,350
59,500
7,000
66,500
2014
Total
funds
£
2013
Total
funds
£
14,793,300
65,100
248,260
15,269,754
88,023
311,979
7. Governance
Group
Auditor’s remuneration and audit costs, including
VAT
. Statutory audit
. Other services
Charity
Auditor’s remuneration and audit costs, including
VAT
. Statutory audit
. Other services
Unrestricted
funds
£
60,500
4,600
65,100
Unrestricted
funds
£
41,750
4,600
46,350
8. Net Movement in Funds
This is stated after charging:
Group
Staff costs
Auditor’s remuneration
Depreciation
39
2014
Total
funds
£
2013
Total
funds
£
14,602,447
46,350
248,260
15,113,208
66,500
311,979
2014
£
2013
£
Wages and salaries
Social security costs
Other pension costs
13,602,619
762,006
29,959
14,036,376
899,878
25,274
Payments to agency staff
14,394,584
398,716
14,961,528
308,266
14,793,300
15,269,794
2014
£
2013
£
13,415,837
757,935
29,959
14,203,731
398,716
14,602,447
13,888,823
890,885
25,234
14,804,942
308,266
15,113,208
Group
2014
2013
Provision of residential and care services and nursery services
1,102
1,170
Charity
2014
2013
Provision of residential and care services and nursery services
1,087
1,084
Charity
Staff costs
Auditor’s remuneration
Depreciation
9. Staff Costs and Trustees’ Remuneration
Staff costs during the year were as follows:
Group
Charity
Wages and salaries
Social security costs
Other pension costs
Payments to agency staff
The average number of employees during the year was as follows:
The number of employees earning £60,000 per annum or more (including taxable benefits but
excluding employer pension contributions) during the year was as follows:
Group and Charity
2014
Number
2013
Number
£70,001 - £80,000
3
3
The Group and Charity paid £17,681 (2013 - £18,420) in respect to defined contribution pension
plans for the above higher paid employees.
40
10. Taxation
Nazareth Care Charitable Trust is a registered charity and therefore is not liable to income tax or
corporation tax on income or gains derived from its charitable activities, as they fall within the
various exemptions available to registered charities.
The subsidiary companies are subject to corporation tax as disclosed in note 1.
11. Tangible Fixed Assets
Leasehold
improvements
£
Furniture
and
equipment
£
Motor
vehicles
£
536,137
653,361
—
1,705,092
525,074
—
337,464
—
(76,498)
1,189,498
2,230,166
Depreciation
At 1 April 2013
Depreciation charge
Disposals
(19,419)
(26,780)
—
At 31 March 2014
Leasehold
interest
£
Group
Total
£
2,578,693
1,178,435
(76,498)
2
—
—
2,578,695
1,178,435
(76,498)
260,966
3,680,630
2
3,680,632
(785,045)
(212,601)
—
(308,997)
(8,879)
83,406
(1,113,461)
(248,260)
83,406
—
—
—
(1,113,461)
(248,260)
83,406
(46,199)
(997,646)
(234,470)
(1,278,315)
—
(1,278,315)
Net book values
At 31 March 2014
1,143,299
1,232,520
26,496
2,402,315
2
2,402,317
At 31 March 2013
516,718
920,047
28,467
1,465,232
2
1,465,234
Cost
At 1 April 2013
Additions
Disposals
At 31 March 2014
Charity
Total
£
The leasehold interest comprises £2. £1 represents the residual investment value of a 999-year
lease on a site in Blackburn which is being developed into a retirement village. The development
value of the lease interest in the site, owned by a subsidiary on a 125-year under-lease, is included in
stocks and work in progress. £1 represents the residual investment value of a leasehold property
that the company holds on a 125 year lease on a site at Plymouth.
12. Investments
Charity
Shares in subsidiary undertakings at cost
At 1 April 2013
Additions
At 31 March 2014
2014
Number
£
2013
Number
£
6
—
4
2
6
6
Investments represent 100% of the issued share capital of NRV Development (Blackburn) Limited,
NRV Development (Plymouth) Limited, NRV Blackburn Limited, Nazareth Catering Limited, NRV
Management (Plymouth) Limited, and Nazareth Home Care Limited. The activities of these
companies are summarised in note 1.
41
13. Stocks and Work in Progress
Included in the Group’s cost of stocks and work in progress is the construction cost of £4,178,591
(2013 - £4,278,856) in respect to the Blackburn Phase 2A development accounted for within NRV
Development (Blackburn) Limited. This balance includes finance costs of £162,943 (2013 - £121,727)
The costs of stocks and work in progress include further construction and project costs of £2,615,610
(2013 - £1,930,506) in respect to Block A development at NRV Development (Plymouth). This
balance includes finance costs of £136,773 (2013 - £38,890).
14. Debtors
Group
2014
£
Residential and care service fees
Prepayments and accrued income
Trade debtors
Other debtors
Amounts due from NRV Blackburn (note 22)
Amounts due from NRV Development (Plymouth)
(note 22)
VAT recoverable
2013
£
Charity
2014
£
2013
£
632,762
311,848
78,572
103,056
—
576,254
370,821
18,304
243,376
—
632,762
304,546
50,278
82,186
22,118
576,254
352,919
3,235
216,082
—
—
32,380
1,158,618
—
—
1,208,755
104,209
—
1,196,099
51,695
—
1,200,185
15. Creditors: Amounts Falling Due Within One Year
Group
2014
£
Accruals
Trade creditors
Other taxes and social security
Gross wages
Amount due to The Congregation of the Sisters of
Other
2013
£
Charity
2014
£
2013
£
211,800
871,903
248,375
929,258
614,339
503,178
380,508
407,696
121,165
685,404
242,635
929,258
472,847
402,114
369,649
407,696
421,017
165,291
2,847,644
640,046
465,034
3,010,801
262,227
89,290
2,329,979
583,233
278,366
2,513,905
42
16. Creditors: Amounts Falling Due After One Year
Group
Loans from The Congregation of the Sisters of
Loans from The Congregation of the Sisters of
Nazareth Generalate (note 22)
Bank loan
Charity
2014
£
2013
£
2014
£
2013
£
505,660
—
505,660
—
4,874,604
1,994,928
3,903,950
2,175,490
—
—
—
—
7,375,192
6,079,440
505,660
—
On 7 March 2012, The Congregation of the Sisters of Nazareth Generalate granted a loan facility to
NRV Development (Blackburn) Limited for an unsecured loan of up to £4.2 million to be used to
finance the construction of apartments and bungalows at the Larmenier Retirement Village, Preston
New Road, Blackburn. The loan is accruing interest at 4.5% above the Official Bank Rate of the Bank
of England. At 31 March 2014, £2,377,068 (2013– £2,150,630) (including accrued interest of
£212,427 (2013 - £103,565)) of the loan had been drawn down.
On 19 December 2012, The Congregation of the Sisters of Nazareth Generalate granted a loan
facility to NRV Development (Plymouth) Limited for an unsecured loan of up to £4.6 million to be
used to finance the construction of apartments at the care village in Plymouth. At 31 March 2014,
£2,497,536 (2013 - £1,753,320) (including accrued interest of £136,773 (2013 - £38,980)) of the loan
had been drawn down, interest accruing at 4.5% above the Official Bank Rate of the Bank of England.
The bank loan has been advanced by The Royal Bank of Scotland plc to NRV Development
(Blackburn) Limited. The bank has first freehold and leasehold charges over the Retirement Village
and its associated assets, supported by a £3 million guarantee by Nazareth Care Charitable Trust and
its trustees. At 31 March 2014, £1,994,931 (2013 - £2,175,490) (including accrued interest of
£113,563 (2013 - £18,069)) of the loan had been drawn down. Interest accruing at 3.5% above
LIBOR (London Interbank Offered Rate).
17. Provision for liabilities
2014
£
At 1 April 2013
Charge for the period
At 31 March 2014
2013
£
87,603
18,000
74,103
13,500
105,603
87,603
The provision relates to a sinking fund in NRV Blackburn Limited.
43
18. Restricted Funds
Group and Charity
At 1
April
2013
£
Incoming
resources
£
Donations for specific purposes
5,255
92,972
Resources
expended
£
(98,227)
Transfers
£
At 31
March
2014
£
—
—
Restricted funds represent voluntary income received to be used at specific homes.
19. Tangible Fixed Assets Fund
Group
£
At 1 April 2013
Movement in year
1,465,234
937,083
At 31 March 2014
2,402,317
Charity
£
At 1 April 2013
Movement in year
1,465,232
937,083
At 31 March 2014
2,402,315
The tangible fixed assets fund represents the net book value of the Group’s and Charity’s tangible
fixed assets. These assets are essential to the continued mission of the Group and Charity and
include the improvements to care homes and the furniture and equipment used in those care
establishments.
20. Analysis of Net Assets Between Funds
Group
Fund balances at 31 March 2014 are represented
by:
Tangible fixed assets
Net current assets
Long Term Liabilities
Provisions
Total net assets
General
funds
£
—
11,963,373
(7,375,192)
(105,603)
4,482,578
Tangible
fixed assets
fund
£
Restricted
funds
£
2,402,317
—
—
—
2,402,317
—
—
—
—
—
Total
£
2,402,317
11,963,373
(7,375,192)
(105,603)
6,884,895
44
General
funds
£
Charity
Fund balances at 31 March 2014 are represented
by:
Tangible fixed assets
Investments
Net current assets
Long Term Liabilities
Total net assets
Tangible
fixed assets
fund
£
Restricted
funds
£
2,402,315
—
—
—
2,402,315
—
—
—
—
—
—
6
5,467,945
(505,660)
4,962,291
Total
£
2,402,315
6
5,467,945
(505,660)
7,364,606
21. Capital Commitments
At 31 March 2014 the Group and Charity had no capital commitments (2013 – none).
22. Connected Entities
The Charity is connected to The Congregation of the Sisters of Nazareth (the Congregation), an
unincorporated international body of women founded by Victoire Larmenier and recognised by the
Vatican. The Congregation is an international Roman Catholic religious congregation comprising 252
Sisters worldwide. The Superior General of the Congregation appoints the trustees of the Charity.
The Charity is connected also to two other registered charities:
Name
Registration numbers etc
The Congregation of the Sisters of
A
Nazareth Generalate (CSNG)
Registration No 1138876 (England
registered
charity
Principal activities
(Charity
The support of the Congregation and its work
throughout the world.
and Wales))
The Congregation of the Sisters of
A
(Charity
The support of the religious and other works
Nazareth Charitable Trust (CSNCT)
Registration Nos 228906 (England
registered
(or ministries) carried on by members of the
and
Congregation (the Sisters) in the U.K. and the
Wales)
(Scotland))
charity
and
SC040507
care of those Sisters throughout their lives with
the Congregation in the U.K.
Ownership of 15 establishments in England,
Wales, Scotland and Northern Ireland known
as Nazareth Houses within which nursing,
residential and care services are provided to
older people in need.
In the case of both CSNCT and CSNG the Superior General of the Congregation also appoints the
Trustees. Throughout the year, two or more of the three charities had some Trustees in common.
The Charity and CSNCT have three Trustees in common. None of the Trustees of the Charity are
Trustees of CSNG.
At no point during the accounting period did any of the three charities control one or more of the
others. As a consequence accounts consolidating the three charities are not prepared.
45
During the period there have been a number of transactions between the Charity and/or NRV
Development (Blackburn) Limited, NRV Development (Plymouth) Limited, CSNG and CSNCT, details
of which are given in the paragraphs below.
CSNCT and NCCT
At 31 March 2014 the Charity owed £262,227 (2013 - £583,233) due within one year to CSNCT, being
rental costs owing. This related to the costs of NCCT using buildings owned by CSNCT in its
operations providing residential and care services and nursery services.
At 31 March 2014 the Charity owed £505,660 (2013 - £nil) payable after one year to CSNCT being
loans made from CSNCT to NCCT.
During the year CSNCT donated £197,440 to the Charity.
CSNG and NRV Development (Plymouth) Limited
In 2012, The Congregation of the Sisters of Nazareth Generalate granted a loan facility to NRV
Development (Plymouth) Limited for an unsecured loan of up to £7.9 million to be used to finance
the construction of a care village in Plymouth. The Co-operative Bank had agreed to lend £4.2 million
to NRV Development (Plymouth) Limited and so it was expected that The Congregation of the Sisters
of Nazareth Generalate’s actual loan would not exceed £3.7 million. The construction company
originally awarded the tender went into administration in July 2013 and, as a result, costs have
increased. Therefore, The Congregation of the Sisters of Nazareth Generalate’s actual loan is likely
to rise from £3.7 million to £4.6 million.
At 31 March 2014, £2,497,536 (2013 - £1,753,320) (including accrued interest of £136,781 (2013 £38,980)) of the loan had been drawn down (see note 16). The loan from the Co-operative Bank will
be repayable from the proceeds from the future sale of apartments in the village together with
accumulated interest, accruing at 4.5% above the Official Bank Rate of the Bank of England. The
Congregation of the Sisters of Nazareth Generalate will provide the bank with a guarantee for
£500,000 supported by a legal charge over the Charity’s bank account for that amount as security
against the bank loan. The bank loan will be secured further by a charge over property of which
CSNCT is the freeholder.
At 31 March 2014, NRV Development (Plymouth) Limited owed NCCT £104,209 (2013 - £51,695) in
respect of payments made by the Charity on behalf of NRV Development (Plymouth) Limited.
CSNG and NRV Development (Blackburn) Limited
In 2012, CSNG granted a loan facility to NRV Development (Blackburn) Limited for an unsecured loan
of up to £4.2 million to be used to finance the construction of apartments and bungalows at the
Larmenier Retirement Village, Preston New Road, Blackburn. The loan is repayable by the third
anniversary of the agreement together with accumulated interest, interest accruing at 4.5% above
the Official Bank Rate of the Bank of England. At 31 March 2014, £2,377,068 (2013 – £2,150,631)
(including accrued interest of £212,426 (2013 - £103,565)) of the loan had been drawn down.
CSNCT and NRV Development (Blackburn) Limited – Retirement Villages
Under the terms on which NRV Development (Blackburn) Limited sells apartments within the
retirement village, should the purchaser for any reason wish to vacate the property at any time and
not sell it on the open market, NRV Development (Blackburn) Limited undertakes to buy back the
unit. It is calculated that the maximum liability to NRV Development (Blackburn) Limited in the event
46
that several leaseholders simultaneously exercise the buyback option would be £750,000. Should
NRV Development (Blackburn) Limited not have sufficient funds to meet this liability, CSNCT has
agreed to meet any shortfall.
During the year, CSNCT bought back two apartments at a cost of £145,988 and £161,500
respectively. As a result the liability has fallen from £750,000 to £442,512.
At 31 March 2014, CSNCT was owed £68,814 (2013 - £68,814) by NRV Development (Blackburn)
Limited relating to loans from CSNCT to NRV Development (Blackburn) Limited.
CSNCT and NRV (Blackburn) Limited
At 31 March 2014 CSNCT was owed £89,978 (2013 - £60,346) by NRV (Blackburn) Limited.
NCCT and NRV (Blackburn) Limited
At 31 March 2014 NCCT was owed £22,118 (2013 - £nil) by NRV (Blackburn) Limited.
23. Liability of the Members
The Charity is constituted as a company limited by guarantee. In the event of the Charity being
wound up each of the members would be required to contribute an amount not exceeding £1.
24. Ultimate Control
The Charity is controlled by the Congregation, an international Roman Catholic religious
Congregation, by virtue of the fact that the Superior General of the Congregation appoints the
Trustees.
47

Annual Report Nazareth Care Charitable Trust

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